This month's featured article
Why Don't Governments Do Away with Protectionism?
TODO YasuyukiFaculty Fellow, RIETI
The global economy has been shaken by the protectionist measures of U.S. President Donald Trump. Having embarked on protectionism in January 2017 by withdrawing from the Trans-Pacific Partnership (TPP) agreement, the president has apparently gone on to order a hike on tariffs to 25% imposed on $200 billion worth of Chinese goods, as reported in August 2018. In response, China hit back with plans to impose new tariffs on $60 billion worth of products made in the United States. Likewise, in Europe, the United Kingdom is preparing to leave the European Union (EU) amid mounting support of parties on the extreme right advocating for protectionism in respective EU nations.
Meanwhile, time and time again, empirical research in the field of economics has shown that such protectionist moves tend to dampen business conditions in the very countries implementing such policies. Based on my research findings which have been reported in the RIETI columns ("Estimating the TPP's Expected Growth Effects" and "Japan Must Form a Bulwark to Protect Globalization"), as well as in the Nihon Keizai Shimbun ("Asia's Growth and Japan"), I have advocated that international trade, investment, and research provide economic benefits, and have proposed government policy recommendations in that regard.
To read the full text
https://www.rieti.go.jp/en/columns/a01_0502.html
Recent articles on RIETI's website
"Future of Capitalism: Resolution of inequality is imperative"
by YOSHIKAWA Hiroshi (Faculty Fellow, RIETI)
https://www.rieti.go.jp/en/papers/contribution/yoshikawa-hiroshi/02.html
"Reform of the Listing System for High-tech Companies: Opening the way for red-chip companies to issue China Depositary Receipts (CDRs)"
by Chi Hung KWAN (Consulting Fellow, RIETI)
https://www.rieti.go.jp/en/china/18070401.html
"Electoral pressure amplifies the protectionist effects of higher imports"
by ITO Banri (Research Associate, RIETI)
https://www.rieti.go.jp/en/columns/v01_0111.html
"Prices and Companies' Behavior: The key is making it easier for companies to pass on cost increase to prices"
by WATANABE Tsutomu (Research Associate, RIETI)
https://www.rieti.go.jp/en/papers/contribution/watanabe/07.html
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